Trade data to dominate
Holidays could see a cautious start to trading in the Asia Pacific region today. Early indications point to mild positive momentum, but a full diary of data could set the direction for investors. Trade data from China stands out as the most likely candidate.
European shares rallied despite weaker than expected German numbers, as investors recalled ECB Chair Draghi’s dovish comments last week. However, further signs of an unresponsive supply side in oil markets, this time from Russia, saw oil prices drop 4% and drag sentiment and industrial commodities lower. Commodity weakness could drive Australian share underperformance in the session.
Japanese national account data released this morning is still indicating economic contraction, albeit at lower rates than forecast. Australian consumer confidence slumped, but traders are awaiting the reads on business conditions and confidence due after market open. Last month, weakness in China trade data sparked growth concerns after exports and imports fell around 8%. Expectations that today’s release of August data will show similar declines are possibly setting up markets for a positive surprise.